NEWS: A digest of aerospace, defense and technology news from the Gulf Coast I-10 region

Friday, January 26, 2018

ITC sides with Bombardier

A U.S. trade commission on Friday unanimously sided with Bombardier against Boeing in a ruling that allows the Canadian company to sell its newest jets to U.S. airlines without heavy duties. The U.S. International Trade Commission voted 4-0 that Bombardier's prices did not harm Chicago-based Boeing and discarded a U.S. Commerce Department recommendation to slap a near 300 percent duty on sales of the company's 110-to-130-seat CSeries jets for five years. It did not give a reason immediately. Boeing alleged it was forced to discount its 737 narrow-bodies to compete with Bombardier, which it said used government subsidies to dump the CSeries during the 2016 sale of 75 jets at "absurdly low" prices to Atlanta-based Delta Air Lines. Bombardier called the trade case self-serving after Boeing revealed on Dec. 21 that it was discussing a "potential combination" with Brazil's Embraer, which builds the E190-E2. Through a venture with Europe's Airbus, which has agreed to take a majority stake in the CSeries this year, Bombardier plans to assemble CSeries jets in Mobile, Ala., to be sold to U.S. carriers starting in 2019. CEO Alain Bellemare said Bombardier still plans to move forward with an Alabama assembly line. (Sources: multiple, including CNBC, Reuters, 01/26/18) Previous